News & Analysis as of

Good Faith Insurance Litigation

Presley & Presley

No Settlement Opportunity, No Problem

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The vast majority of extra-contractual/bad faith cases involve a carrier’s failure to secure a release of an insured by accepting a reasonable settlement opportunity within the policy limits. The absence of a reasonable...more

Goldberg Segalla

[Webinar] Practical and Tactical Approach to Good Faith Claims Handling in the Current Bad Faith Environment - March 22nd, 12:00...

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Bad faith is a continuum and must be considered from claims stage to trial. Insurance law veterans Thomas F. Segalla and Colleen M. Murphy will help you understand tools and potential solutions to the challenges faced by...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - March 28 2023

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Southern District Finds That Exclusion In HO3 Form Precludes Coverage Even Though Form Inadvertently Omitted From Copy Of Policy Sent To Insured- Scottsdale Insurance Company issued a homeowner’s policy to 232 Dune Road...more

Wiley Rein LLP

Insurer’s Declaratory Judgment Complaint Plausibly Alleges Violation of Cooperation Clause at Motion to Dismiss Phase

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The United States District Court for the Northern District of Illinois, applying Illinois law, has held that an insurer’s complaint plausibly alleged that the insured had breached the terms of the policy’s cooperation clause....more

Maron Marvel

McDill Tenders in Louisiana: How An UM/UIM Insurer Can Avoid Penalties and Attorney’s Fees

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Louisiana insurers who provide uninsured/underinsured motorist coverage are often asked for a “McDill tender” by a claimant, and it’s important for the insurer to know its obligations when responding to such a request....more

Rivkin Radler LLP

Insurance Update - May 18 2022

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You’ll find some notable decisions in our May Insurance Update. Appeals over pandemic-related business interruption losses have made their way up to state high courts. And so far, these courts have continued the trend...more

Pullman & Comley - Connecticut Health Law

Notable 2020 Connecticut Decisions Affecting Health Care

Plaintiff Cannot Cure Defective Malpractice Opinion Letter with an Affidavit Connecticut law requires that a plaintiff in a medical malpractice action demonstrate the existence of his or her good faith by obtaining a written...more

Carlton Fields

Washington Federal Court Finds Attorney-Client Privilege Waived by Claims Handler’s Inadvertent Disclosure of In-House Counsel’s...

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A federal district court in Washington recently held that a claims handling mishap resulted in a waiver of the attorney-client privilege otherwise protecting a coverage opinion provided by the insurer’s internal legal...more

Carlton Fields

U.K. Court Of Appeal Prohibits “Spiking” in Mesothelioma Cases in Win for Reinsurers

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In a closely watched case, the Court of Appeal of England and Wales has given reinsurers a win with respect to reinsurance claims related to mesothelioma and other asbestos-related diseases....more

Cozen O'Connor

Massachusetts: Third-Party Claim Handler Made Reasonable, Prompt Efforts to Settle Nursing Home Liability Claim, and Therefore Was...

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On March 18, 2019, the First Circuit Court of Appeals affirmed a decision holding that Sedgwick Claims Management Services made reasonable and prompt efforts to settle a nursing home liability claim, and therefore was not...more

Carlton Fields

Second Circuit Rejects Claims Against Insurer for Settlement Using Policy Funds

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Three plaintiffs—a subcontractor (HBI), an affiliated entity (Keller Foundations), and their parent (Keller Group)—brought a claim against Zurich, which had issued a liability policy (the Policy) to the Keller Foundations for...more

Cozen O'Connor

In Rhode Island, No Duty of Good Faith to Third Party Claimant

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In Summit Insurance Company v. Stricklett, — A.3d —, No. 2017185APPEALPC12536, 2019 WL 190358, (R.I. Jan. 15, 2019), the Supreme Court of Rhode Island held that – similar to many jurisdictions – the duty to act in a...more

Payne & Fears

Victory for Policyholders - An Insurer's Breach of the Duty to Defend Opens Up Policy Limits

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Insurance companies can no longer breach the duty to defend believing that, as long as they act in good faith, their potential liability is capped at policy limits or any costs incurred by the insured in mounting a defense....more

Saul Ewing LLP

Arizona Worker’s Comp. Carriers: Enforce Your Lien, But Offer to Reduce it, Too

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The Arizona Supreme Court, in Twin City Fire Ins. Co. v. Leija, -- P.3d --- , 2018 WL 3651026 (Ariz. Aug. 2, 2018), affirmed worker's compensation insurance carriers' ability to enforce a statutory lien against beneficiary...more

Carlton Fields

District Of South Carolina Denies Motion To Dismiss Action Involving Fronting Relationship

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Applying Delaware law, a South Carolina District Court found Plaintiff had properly pled its causes of action for breach of contract, breach of fiduciary duty, negligence/gross negligence and negligent misrepresentation...more

K&L Gates LLP

The Misrepresentation Defense Strikes Again

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In May of this year, the United States Court of Appeals for the Second Circuit handed down a decision that illustrates, once again, the effective use by insurers of the misrepresentation defense to void their policies on the...more

Carlton Fields

New York Appellate Court Affirms Denial Of Competing Summary Judgment Motions In Reinsurance Dispute

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In a short, unanimous opinion, the New York Appellate Division, First Department, affirmed a trial court’s ruling that genuine issues of fact precluded it from granting summary judgment to a reinsurer or the plaintiff-cedents...more

Cozen O'Connor

Indiana Court Dismisses Bad Faith Allegations and Praises Insurer for Timely Claims-Handling

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A recent federal District Court decision from Indiana, Autumn Glen Homeowners Ass’n. v. Travelers Ind. Co. of America, 2015 WL 1256391, 2015 U.S. Dist. LEXIS 33317 (S.D. Ind., Mar. 18, 2015) provides insight into both...more

Carlton Fields

First Circuit Recognizes Uberrimae Fidei In Admiralty Context

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The First Circuit recently examined, in the admiralty context, the doctrine of uberrimae fidei, a legal doctrine requiring that all parties to an insurance contract deal in good faith and fully disclose all material facts....more

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